The long-running saga in K-pop took its latest dramatic turn in a Seoul courtroom.
Min Hee-jin, CEO of HYBE’s record label Ador, will continue to serve as CEO of the company after the Seoul Central District Court effectively blocked HYBE from firing the top executive.
According to local media reports Yonhap News Agency, The Seoul Central District Court issued an injunction on Thursday (May 30) barring K-pop giant HYBE from voting at Ador’s shareholder meeting on Friday (May 31) aimed at ousting her and other members of the subsidiary. Executives.
HYBE owns a majority stake (80%) in Ador, which means Min Hee-jin will likely be fired if it is allowed to exercise its voting rights.
The remaining 20% of the company is held by Min Hee-jin, who owns 18%, while other Ador executives hold 2%.
The drama began last month when HYBE revealed it was auditing Ador CEO Min Hee-jin and several other Ador executives for allegedly trying to steal K-pop from HYBE, the company behind K-Pop. Pop sub-brands control stars like BTS.
“HYBE invoked its right to audit CEO Min Hee-jin and executives of the company’s affiliated brand ADOR and requested them to convene a shareholders’ meeting on April 22,” a HYBE spokesperson said. MBW then.
In her application for an injunction to prevent HYBE from voting at Ador’s shareholder meeting, Min Hee-jin argued that her contract with the company included a clause protecting her position as CEO for five years.
according to Korea JoongAng IlboThe clause states: “HYBE must exercise its voting rights at Ador shareholders’ meetings to maintain Min’s position as CEO and internal director of ADOR for a period of five years after the establishment of ADOR on November 2, 2021.”
according to Korea JoongAng Ilbo The court reportedly ruled on Thursday that “the reasons alleged by HYBE for the dismissal or resignation were not sufficient”.
However, the court acknowledged that “it is clear that Min Hee-jin sought ways to remove NewJeans from HYBE’s control or to force HYBE to sell its shares in ADOR,” but “it is difficult to conclude that these attempts were more than simply seeking help.” concrete actions”.
The court cited that Min Hee-jin’s behavior “could be considered a betrayal of HYBE” but “does not necessarily constitute a breach of trust.” Korea JoongAng Ilbo as a conclusion.
In a brief statement to local media, HYBE said it “plans to continue the proceedings within the limits of the law, as clearly stated in the court judgment”.
If HYBE violates the ruling, it must pay a fine of 20 billion won ($14.5 million) to Min Hee-jin.
At the same time, Yonhap News Agency Following the shareholders’ meeting, three HYBE executives have now been reportedly appointed to Ador’s board of directors, and two executives close to Min Hee-jin (identified only as Shin and Kim) have been fired.
A source was quoted as saying, yonhap news agency According to reports, HYBE’s new Ador board members include the latter company’s chief human resources officer Kim Ju-young, chief strategy officer Lee Jae-sang and chief financial officer Lee Kyung-jun.
Min Hee-jin and her lawyer spoke to local media at a news conference in Seoul on Friday. It is reported Korea Joongang Daily, One of the executive’s attorneys, Timothy SK Lee, said Adol’s board could still try to remove the executive.
“Our concern is that the board is set up in a way that puts Min at risk of being fired,” he said.
“But legally, the passing of the injunction prevents HYBE from exercising its rights. It’s a precarious position, so now that the injunction is approved, can she still keep her position as CEO?”
“Since a group of HYBE executives were hired as inside directors, there was a way to call the board to fire Min, but the new directors have not passed the motion.”
HYBE’s stock price took a hit when news first broke of the conflict between HYBE and ADOR CEO Min Hee-jin.
Share price fell nearly 8% Monday, April 22, to 212,500 won (approximately $154) that day, news spread around the world. HYBE launched an audit against ADOR’s CEO and several other senior executives of ADOR, suspecting that they had been conspiring to cut off the company’s ties with HYBE.
As of Friday, April 26, the stock had fallen 12.6% This week closed at 201,500 won. All in all, this erases 1.06 trillion South Korea won ($770 million) out of HYBE’s market capitalization.
HYBE shares fell 2% on Friday 200,000 South Korea won (approximately $145.32).
HYBE’s revenue for the first quarter of 2024 was 360.92 billion won ($271.57 million Calculated at the average exchange rate in the first quarter), a 12.1 year-on-year According to the company’s latest financial report released on May 2, the company’s stock price fell.global music business
